Trump Cuts First Big Deal, Avoids Debt Ceiling & Government Shutdown

September 08, 2017

Copyright: Structuresxx

Members of Congress
returned this week itching for a fight on a number of must-pass measures in the
12 legislative days remaining before the fiscal year, including raising the
debt ceiling, avoiding a government shutdown, and providing funding for
Hurricanes Harvey and Irma. All these issues were expected to become protracted
and complex battles. Then, on Wednesday, September 6, President Trump shockingly
reached an agreement with House Minority Leader Nancy Pelosi (D-CA) and Senate
Minority Leader Chuck Schumer (D-NY) aimed at effectively addressing all three issues
for the time being.

The
agreement would fund government activities through mid-December, raise the debt
ceiling through a similar timeframe, and clear the way for Hurricane Harvey and
Irma relief to pass. As recently as the morning of Trump’s meeting with
Democrat leaders, House Speaker Paul Ryan (R-WI) had expressed skepticism about
a short-term deal, particularly related to the debt ceiling, but Trump appeared
to be eager to cut a deal.

On
Thursday, the Senate passed a $15.25 billion Harvey relief packaged which included
a debt-ceiling increase and a continuing resolution to keep the government
running through mid-December while the House passed the measure on Friday
morning. President Trump is expected to quickly sign the legislation into law. With
estimates of Irma’s impact growing by the day, the Harvey relief package represents
a fraction of what will needed in affected areas, as efforts transition from
recovery to rebuilding in the coming months.

Despite the
short-term reprieve from a government shutdown and debt default, Congress is
still facing a number of issues this fall, including a last-ditch effort to
amend Obamacare, resolution of the Obama-era DACA program, a looming foreign
affairs crisis stemming from recent actions taken by North Korea and, the
promise of a comprehensive tax reform package.